New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-01-06
SALE OF HOOSAC TUNNEL.
THE FITCHBURG RAILROAD COMPANY TIN
PURCHASER

WORK THAT COST OVER $2O.0OOO 900 FErcHrs
HALF THAT SUN IN STOCK AND BONDS !,
BOSTON Jan. tSpeciaD.-After about six months
investigation and consideration, many important
meetings devoted almost entirely to its discussion.
and. finally, two days of continuous session on
the matter the property Of the State of Massa-
chusetts in the Hoosac Tunnel and Troy
and Greenfield Railroad has been disposed
of by the Governor and Council to the
Fltchburg Railroad Company. The terms of tls
sale and the conditions pertaining thereto rein-
forced by expert and legal approval. definitely
settled at the meeting Of the Council which began
this forenoon, and the last signatures were affixed
to the necessary documents just before o'clock
this evening.
In BRIEF the basis of the sale is that the State Of
Massachusetts, is to receive S. 900 900 of ftyyear
bonds, bearing interest at per cent dur
ing the first five years, 3l2 per
cent during tho next five yeais, and
four per cent during the remainder OF tho term.
Massachusetts, is also to receive 900 600 in COM
mon stock of the FItchburQ Railroad and the road
is to increase its present issue Of 52,s66
shares of stock One-third or 1892 shares,
making total Of 7O.4sS shares or $7,OiS 500, all
of which is to be preferred stock. and the extra
one-third is to be divided among the present stock
holders pro rata according to their holdings In
icturh Ior tnIS increase Oh One-tnlr1
tho dividends on preferred stock to
be paid after the interest on the
bonds to be per cent and any surplus of earn.
ings is to be divided pro rata between the State Of
Massachusetts on Its $5,00O,00O preferred stock
and the road road. That, is the State is to receive
hve-twelfths and the railroad seven-twelfths
of such surplus. Ii is hardly possible to estimate
the value of the securities which the State is to
receive. The 100000 In bonds is considered
here TO he worth par certainly, and the value of
the 600 III stock is contingent on the growth
The tunnel was first projected in 1926 when 10
was estimated that The cost would be II ,0iS.557.
II was begun in 1851 and cut through on NOyem-
Der "a, 1873. The first train was run through it Oh
February ., 1870 and the regular traffic was begun
in the autumn of 1876. The total length of the
tunnel is four and three-quarter miles. Its width
is twenty-slx feet: Twenty millions of bricks
total cost to the State was
2o2iI,s ,s42 The arch . of the tunnel
twenty-six feet high. At both entrances are hand
some granite facades The west shaft. which Is
$500 feet from the west end OF the tunnel is 3l8
in the tunnel is the central shaft 102S feet from
the bed of the tunnel to the sum nit of the
tam, the shaft measuring fifteen by. twenty-seven
feet, which provides amply for ventilation
Augustus Kountze president OF the Boston, Hoosac
Tunnel and Western Railway Company said last evening:
have heard anything definite abon the sale Of
the Hoosac Tunnel the Troy and Boston Railroad
have heard it stated that the Fchburg Railroad had
cured the tunnel from the State for either five five and
half millions; both prices have been mentioned, but
| doubt whether the trade has been cOnsummated. Tho
negotiations may he in state where they be- easily
completed If the sale effected Il Will not affect the bust
road in the least We deliver traffic al
this end Of the tunnel and whoever owns the tunnel Will
undoubtedly he glad TO receive tt on favorable terms
do not think the fitchburg will be likely - reject our
business, which has been usually aOout three times
large the return business received from the tunnel
road No, the sale cannot affect in any way do not
know whether any other company than the Fitchburl
made an offer for the property but know that our COM
pany did not make a bid"